China stimulus boosts European shares, autos rally after Peugeot results

European shares
European shares Copyright STAFF(Reuters)
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China stimulus boosts European shares, autos rally after Peugeot results


European shares bounced on Tuesday after China signalled more stimulus measures to soften the blow from an ongoing tariff war with the United States, triggering relief in trade-sensitive tech, mining, and car stocks as some results also impressed.

The pan-European STOXX 600 <.STOXX> was up 0.6 percent by 0829 GMT, with the trade-sensitive DAX <.GDAXI> up 0.8 percent and the FTSE 100 <.FTSE> rising 0.5 percent.

Sectors reliant on trade and exports to China, like tech, industrials, basic resources, and autos, were the top gainers.

The autos sector <.SXAP> jumped 2.2 percent to its highest since Dec. 5 on the stimulus news and after a strong update from Peugeot maker PSA Group soothed investors' concerns about carmakers facing slowing demand in China.

Shares in the carmaker climbed 2.3 percent to their highest since mid-November after reporting record sales for 2018.

Staffing company Hays also shone after strong results which showed an 8 percent rise in quarterly net fees, boosted by strong hiring in Germany, its biggest market.

M&A was a driver with Swedish telecoms company Millicom up 4.7 percent after a bid from Liberty Latin America .

Kinnevik , the majority stakeholder in Millicom, rose 4 percent among top STOXX gainers.

On the negative side, UK bookmakers Paddy Power Betfair , William Hill , GVC Holdings and 888 Holdings <888.L> fell 1.7 to 3.2 percent after the U.S. Justice Department published an opinion which could further restrict online gambling.

Chocolate maker Lindt & Spruengli fell 3.1 percent after reporting sales rose 5.1 percent in 2018, in line with its "around 5 percent" goal, but highlighted the market environment remained "very challenging".

And among mid-caps, shares in sub-prime lender Provident Financial plunged 20 percent after it issued a profit warning, citing higher impairments at its credit card business Vanquis Bank.

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